KUALA LUMPUR – Prime Minister Datuk Seri Anwar Ibrahim will be holding talks with Khazanah Nasional Bhd over the sovereign wealth fund’s reported sale of theme park Kidzania Singapore at a significant loss.
“We will hold a meeting with them (Khazanah),” Anwar was quoted as saying when approached by reporters after performing his Friday prayers in Cyberjaya today.
Anwar, who is also finance minister, said this when asked to comment on a story by The Vibes detailing that Kidzania was recently sold to theme park operator Sim Leisure Group for a mere S$110,000 (RM379,398).
This is despite Khazanah and Boustead Holdings Bhd, which initially launched Kidzania in Singapore in 2016, initially injecting RM165.52 million into the project.
According to a Singapore Business Times report, poor management of the theme park by Khazanah saw it record RM51.73 million in revenue and RM28.63 million in losses after tax.
Kidzania also owed RM184.17 million to creditors, with as much as 93% of the debt owed to Khazanah subsidiary Theme Attractions Resorts & Hotels Sdn Bhd (TARH).
It is believed that this failed investment venture by Khazanah is not limited to its activities in Singapore, as it appears that similar circumstances apply to the Kidzania theme park in Malaysia, which was also purchased by Sim Leisure Group in 2020.
According to the Companies Commission of Malaysia documents spotted by The Vibes, TARH sold its 24.48 million shares to Sim Leisure Escape Sdn Bhd in 2021.
Although it was reported that the Sim Leisure Group acquired Kidzania Malaysia for RM3.8 million, it is believed that the project, which also involved Khazanah and Boustead Holdings, required an initial injection of RM90 million for construction and pre-operating costs.
According to a report by South China Morning Post, by the close of 2022, Kidzania Malaysia, which never made any money under its former management – had brought in RM6.46 million in profits for its new owners. – The Vibes, June 16, 2023
